20200930 – Prop 12 9Th Circuit Amicus Business Groups
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Case: 20-55631, 09/30/2020, ID: 11841979, DktEntry: 21, Page 1 of 40 No. 20-55631 IN THE United States Court of Appeals for the Ninth Circuit NATIONAL PORK PRODUCERS COUNCIL & AMERICAN FARM BUREAU FEDERATION, Plaintiff-Appellants, v. KAREN ROSS, et al., Defendant-Appellees, and THE HUMANE SOCIETY OF THE UNITED STATES, et al., Intervenor-Defendant-Appellees. On Appeal from the United States District Court for the Southern District of California No. 3:19-cv-02324-W-AHG, District Judge Thomas J. Whelan BRIEF FOR THE NATIONAL ASSOCIATION OF MANUFACTURERS, THE CHAMBER OF COMMERCE OF THE UNITED STATES OF AMERICA, FMI – THE FOOD INDUSTRY ASSOCIATION, THE NATIONAL CATTLEMEN’S BEEF ASSOCIATION, AND THE NATIONAL MINING ASSOCIATION AS AMICI CURIAE IN SUPPORT OF APPELLANT Patrick Hedren Catherine E. Stetson Erica Klenicki Danielle Desaulniers Stempel MANUFACTURERS’ CENTER HOGAN LOVELLS US LLP FOR LEGAL ACTION 555 Thirteenth Street NW 733 10th Street NW Washington, DC 20004 Washington, DC 20001 Phone: (202) 637-5600 Phone: (202) 637-3000 Fax: (202) 637-5910 Counsel for National Association [email protected] of Manufacturers Counsel for Amici Curiae September 30, 2020 Additional Counsel Listed on Inside Cover Case: 20-55631, 09/30/2020, ID: 11841979, DktEntry: 21, Page 2 of 40 Additional counsel: Steven P. Lehotsky Jonathan D. Urick U.S. CHAMBER LITIGATION CENTER 1615 H Street NW Washington, DC 20062 Phone: (202) 463-5948 Counsel for Chamber of Commerce of the United States of America Stephanie K. Harris FMI – THE FOOD INDUSTRY ASSOCIATION 2345 Crystal Drive Suite 800 Arlington, VA 22202 Phone: (202) 220-0614 Counsel for FMI – The Food Industry Association Scott Yager NATIONAL CATTLEMEN’S BEEF ASSOCIATION 1275 Pennsylvania Avenue NW Suite 801 Washington DC 20004 Phone: (202) 347-0228 Counsel for National Cattlemen’s Beef Association Katie Sweeney NATIONAL MINING ASSOCIATION 101 Constitution Avenue NW Suite 500 East Washington, DC 20001 Phone: (202) 463-2600 Counsel for National Mining Association Case: 20-55631, 09/30/2020, ID: 11841979, DktEntry: 21, Page 3 of 40 CORPORATE DISCLOSURE STATEMENT Amici are the National Association of Manufacturers, the Chamber of Commerce of the United States of America, FMI – The Food Industry Association, the National Cattlemen’s Beef Association, and the National Mining Association. Pursuant to Federal Rules of Appellate Procedure 26.1 and 29(a)(4)(A), undersigned counsel certifies that each is a nonprofit trade association, and that each has no parent corporation and no publicly held corporation owns 10% or more of any of amici’s stock. Dated: September 30, 2020 /s/ Catherine E. Stetson Catherine E. Stetson i Case: 20-55631, 09/30/2020, ID: 11841979, DktEntry: 21, Page 4 of 40 TABLE OF CONTENTS Page CORPORATE DISCLOSURE STATEMENT ......................................................... i TABLE OF AUTHORITIES ................................................................................... iii STATEMENT OF COMPLIANCE WITH RULE 29 ............................................... 1 IDENTITY AND INTEREST OF AMICI CURIAE .................................................. 1 INTRODUCTION AND SUMMARY OF THE ARGUMENT ............................... 4 ARGUMENT ............................................................................................................. 6 I. CALIFORNIA’S EXTRATERRITORIAL AND UNDULY BURDENSOME PROHIBITION OF PORK SALES VIOLATES THE COMMERCE CLAUSE .................................................... 6 A. Proposition 12 Regulates Extraterritorially ........................................... 8 B. Proposition 12 Will Substantially And Irreparably Burden Out-of-State Producers, And No Legitimate Local Interest Justifies This Burden .................................................... 17 II. ALLOWING PROPOSITION 12 TO TAKE EFFECT WOULD GREEN-LIGHT SIMILAR REGULATORY EFFORTS NATIONWIDE ........................................................................... 26 CONCLUSION ........................................................................................................ 30 CERTIFICATE OF COMPLIANCE CERTIFICATE OF SERVICE ii Case: 20-55631, 09/30/2020, ID: 11841979, DktEntry: 21, Page 5 of 40 TABLE OF AUTHORITIES Page(s) CASES: Ass’n des Eleveurs de Canards et d’Oies du Quebec v. Harris, 729 F.3d 937 (9th Cir. 2013) ........................................................................ 18, 19 BMW of N. Am., Inc. v. Gore, 517 U.S. 559 (1996) .............................................................................................. 8 Bonaparte v. Tax Court, 104 U.S. 592 (1881) .............................................................................................. 9 Boyle v. Zacharie, 31 U.S. (6 Pet.) 635 (1832) ................................................................................... 9 Brown-Forman Distillers Corp. v. New York State Liquor Auth., 476 U.S. 573 (1986) .............................................................................. 4, 7, 17, 25 C & A Carbone, Inc. v. Town of Clarkstown, 511 U.S. 383 (1994) ............................................................................ 7, 10, 11, 20 Coyle v. Smith, 221 U.S. 559 (1911) .............................................................................................. 8 Conservation Force, Inc. v. Manning, 301 F.3d 985 (9th Cir. 2002) ................................................................................ 6 Daniels Sharpsmart, Inc. v. Smith, 889 F.3d 608 (9th Cir. 2018) ............................................................................ 6, 8 Duncan v. Becerra, 366 F. Supp. 3d 1131 (S.D. Cal. 2019), aff’d, 970 F.3d 1133 (9th Cir. 2020) ................................................................... 20 Exxon Corp. v. Governor of Maryland, 437 U.S. 117 (1978) ...................................................................................... 22, 23 Franchise Tax Bd. of California v. Hyatt, 139 S. Ct. 1485 (2019) .......................................................................................... 9 iii Case: 20-55631, 09/30/2020, ID: 11841979, DktEntry: 21, Page 6 of 40 TABLE OF AUTHORITIES—Continued Page(s) Great Atl. & Pac. Tea Co. v. Cottrell, 424 U.S. 366 (1976) ............................................................................................ 10 Healy v. Beer Inst., 491 U.S. 324 (1989) .....................................................................................passim Kassel v. Consol. Freightways Corp. of Del., 450 U.S. 662 (1981) ...................................................................................... 21, 29 Legato Vapors, LLC v. Cook, 847 F.3d 825 (7th Cir. 2017) .......................................................................passim Maine v. Taylor, 477 U.S. 131 (1986) .............................................................................................. 6 N. Am. Meat Inst. v. Becerra, No. 2:19-CV-08569-CAS (FFMx), 2020 WL 919153 (C.D. Cal. Feb. 24, 2020) ..................................................................................................... 20 Nat’l Ass’n of Optometrists & Opticians v. Harris, 682 F.3d 1144 (9th Cir. 2012) ............................................................................ 23 Nat’l Foreign Trade Council v. Natsios, 181 F.3d 38 (1st Cir. 1999), aff’d sub nom. Crosby v. National Foreign Trade Council, 530 U.S. 363 (2000) .............................................. 14, 29 Nat’l Meat Ass’n v. Brown, No. CVF-08-1963 LJO DLB, 2009 WL 426213 (E.D. Cal. Feb. 19, 2009) .................................................................................................................. 18 Nat’l Meat Ass’n v. Harris, 565 U.S. 452 (2012) ............................................................................................ 18 NCAA v. Miller, 10 F.3d 633 (9th Cir. 1993) .........................................................................passim New York Life Ins. Co. v. Head, 234 U.S. 149 (1914) .............................................................................................. 9 iv Case: 20-55631, 09/30/2020, ID: 11841979, DktEntry: 21, Page 7 of 40 TABLE OF AUTHORITIES—Continued Page(s) Ogden v. Saunders, 25 U.S. (12 Wheat.) 213 (1827) ........................................................................... 9 Pharm. Research & Mfrs. of Am. v. County of Alameda, 768 F.3d 1037 (9th Cir. 2014) ............................................................................ 25 Pike v. Bruce Church, 397 U.S. 137 (1970) ...................................................................................... 17, 24 Rocky Mountain Farmers Union v. Corey, 730 F.3d 1070 (9th Cir. 2013) ............................................................................ 19 Rocky Mountain Farmers Union v. Corey, 913 F.3d 940 (9th Cir. 2019) ........................................................................ 19, 25 Sam Francis Found. v. Christies, Inc., 784 F.3d 1320 (9th Cir. 2015) ............................................................ 7, 10, 12, 29 Tennessee Wine & Spirits Retailers Ass’n v. Thomas, 139 S. Ct. 2449 (2019) .............................................................................. 6, 26, 29 World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286 (1980) .............................................................................................. 9 CONSTITUTIONAL PROVISIONS: U.S. Const. art. I, § 8, cl. 1 ......................................................................................... 6 U.S. Const. art. I, § 8, cl. 3 ........................................................................................